The Geometric Power Plant initiative, which started 20 years ago in the year 2004, represents hope in Nigeria’s struggle in the power sector. Born from the vision to improve electricity generation and distribution, this project encountered lots of challenges and obstacles along its way.In 2022, thanks to the Buhari administration, all the complicated barriers in regulations, politics, and laws were sorted out.
Starting the initial phase in 2013, the project faced challenges and uncertainties, dealing with political hurdles and opposition. However, in 2022 when the Bureau of Public Enterprises (BPE), facilitated the handover of the Aba Electricity Ringfenced area from EEDC/Interstate Electrics/FGN to Geometric, marking a crucial turning point in the project’s evolution.
Beyond just generating power, Geometric took on a massive infrastructure upgrade. They built four cutting-edge power substations, and renovated three inherited from the old Power Holding Company of Nigeria (PHCN), showing their dedication to modernization. Also, by sourcing high-quality cables, wires, and poles, Geometric demonstrated its commitment to excellence, aligning with standards seen in global industrial centers like Tokyo and San Francisco.
Going deeper into the power dynamics, the importance of Geometric Power Plant’s 188MW capacity, is clear. With Nigeria facing increasing energy demands and supply shortfalls, this significant increase in power generation offers hope, to address the ongoing energy shortages in Abia State and nearby areas. By injecting 188MW of electricity into the grid, Geometric lays the groundwork for growth, bringing in a promising era of prosperity and development.
To understand the magnitude of this project, here are some numbers. Running at full capacity, a 188MW power plant can produce around 135,360,000 kWh of electricity per month.
Geometric also stated that they have completed building four brand new power substations, and refurbished three substations inherited from the then Power Holding Company of Nigeria (PHCN).
In addition, they provided thousands of kilometers of cables and wires, as well as world-class tubular poles, available in only highly industrialized cities such as Tokyo, in Japan and San Francisco, in California.
The size of the Geometric Power Plant is impressive, for the Aba ring-fenced coverage area. For example, Lagos State, one of Nigeria’s most industrialized regions, generates about 800- 1000MW of electricity monthly, despite a demand estimated at 2000MW.
This difference between supply and demand, is and has always been a nationwide challenge. Abia State, under the Enugu Distribution Company (Disco), receives a mere 11.8% of power from the national grid, equating to about 472MW, to be distributed across its and neighboring states.
This falls short of meeting the region’s energy needs, making the introduction of the Geometric Power Plant’s 188MW, particularly important.
The Impact of 188MW
To understand the effect of this development, a 185MW power plant operating 24/7 should generate approximately 135,360,000 kWh of electricity per month.
Assuming an average consumption of roughly 500 kWh per household, this capacity could potentially impact around 270,720 households. This is one reason why Geometric Power’s 188MW plant, is a significant development. The 188MW capacity of the Geometric Power Plant, means a big shift towards addressing the power deficit in Aba and potentially, surrounding areas.
This plant could theoretically support around 270,000 households, assuming an average household consumption of 500kWh. Such a figure highlights the plant’s potential to considerably solve the energy scarcity, in Abia State. Challenges Beyond Generation
However, generating power is only part of the solution. The larger hurdles lie in the efficient transmission and distribution of this generated electricity to end-users. The success of this venture hinges on several critical factors:
The Supply of Gas, This is important because the power plant’s operation depends on a reliable natural gas supply. Geometric has laid a 27km pipeline for this purpose, but the sustainability of this supply is important.
The enforcement of PPAs between Geometric, Aba Power Ltd (APLE), and consumers, will determine the stability of power distribution. These agreements are vital for ensuring that the generated power reaches its intended industrial and residential users.
Addressing the existing debts owed to Discos, and establishing a cost-reflective tariff that match with the Nigerian Electricity Regulatory Commission (NERC) guidelines, remain as challenges. These financial arrangements will play a role in the plant’s day-to-day operation.
Despite these challenges, there is a positive attitude for the provision of 24-hour power supply to Aba residents.
This optimism is depending on the strength of the contractual agreements covering gas supply, maintenance, tariffs, and addressing energy losses. Any lapses in these areas could threaten the project’s success.
Controversy
Confirming recent rumors, Geometric Power Plant’s management has disclosed the Abia State Government’s ownership, in the Aba-based power plant.
There’s been talk about a five percent stake held by the Abia State Government, during Okezie Ikpeazu’s tenure as governor, from 2015 to 2023.
According to the Abia State Accountant General’s 2022 financial report, the state government invested N1.41 billion for this five percent stake.
Recently, a letter dated August 24, 2022, from the power plant’s management to Governor Ikpeazu surfaced online, confirming the state government’s ownership.
In the letter, signed by Barth Nnaji, owner of the power plant and a former Nigerian Minister of Power, the management requested the Abia State Government to settle the outstanding balance of N565 million, for its equity stake.
Governor Ikpeazu’s successor, Mr. Otti, expressed doubt regarding the state government’s investment in the Geometric Power Plant, stating that there was no evidence to support it. However, he acknowledged being informed by power plant officials of a five percent equity offer, which was not fully paid by the government.
In response, Mr. Adinuba, spokesperson for the Geometric Power Plant, clarified that while the agreement was for a five percent equity stake, the Abia State Government had only paid for 3.5 percent. He emphasized that upon settling the outstanding balance, the state would achieve the full five percent equity stake.
Former Commissioner for Information under Ikpeazu’s administration, John Kalu, agreed this, saying that the past administration indeed purchased a 3.5 percent equity stake in the company. He urged Otti to accept this confirmation and settle the outstanding balance
